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Constitution of a company – corporate and tax issues

Raquel Guzmán

Escura

CORPORATE ISSUES

1) To obtain the Foreigner Identification Number (NIE).

2) By-Laws:

  1. Company name
  2. Company purpose
  3. Number of shares
  4. Share capital
  5. Registered office of the company

3) Manager:

  1. Sole manager
  2. Joint managers
  3. Separate managers
  4. Board of directors

4) Shareholders

5) Certified of Bank Entity (3.000.-€ minimum share capital)

6) Public deed before notary including all the previous documents.  

 

TAX ISSUES

- Corporate tax:

  • The general CIT rate in Spain is 25%. Newly created companies are taxed at a 15% tax rate for both the first tax period in which they obtain a profit and the following tax period.
  • This tax form is filed on an annual basis each 25th of July in relation to the last tax year.

- VAT:

  • The general VAT rate in Spain is 21% (it is determined from the difference between the VAT from the sales and the VAT from the purchases).
  • This tax form is filed on a quarterly basis.

- IAE:

  • This tax is exempt during the first 2 years from the initial of activity and it is paid once the company arrives at a total income of 1 million Euros

- Social security:

  • The company should pay a fixed quote for each manager (tax resident in Spain) of 315 Euros on a monthly basis.
  • The company should pay for each employee (not manager) 32% of their gross salary (approximately).

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